The ratio calendar combination spread couples two ratio calendar spreads, one using calls and the other using puts. The call strike prices are higher than the put strike prices. This strategy is complex and profit is limited, but if a high amount of time value is involved in the short positions, that profit can be substantial and risk is still limited.
Much of the stock market has been in “wait-and-see” mode since the election, but some sectors have performed exceptionally well. Among these are the financials.
The great advantage of the exchange-traded fund (ETF) is that it’s built-in diversification. The great disadvantage? Also that it’s built-in diversification.
How will the November Presidential election affect energy in general, and the coal industry specifically? The contrast between the two major candidates is glaring.
There are really only a few basic options strategies, and everything else is built on these in some form. This range of possible strategic designs is what makes the options market so interesting, challenging, profitable... and also nice and risky.
If you want to go fast and get some serious movement, well, you have to climb on board the rollercoaster first, even if it scares you a little bit. Okay, here we go. Today we'll take a deeper look at four of the eight options strategies we use on a routine basis.
